This story was originally published on Supply Chain Dive. To receive daily news and insights, subscribe to our free daily Supply Chain Dive newsletter. Dive Brief: PepsiCo has begun testing in Texas the integration of its two largest North American business units — snacks and beverages — into a more unified distribution model to reduce costs and boost productivity, executives told investors last month. The food manufacturer’s warehouse consolidation plans for the two businesses are part of an initiati ...

Core Insights - UPS is increasing its reliance on gig delivery drivers to manage the growing eCommerce volumes, particularly during peak seasons [1][2][3] - The company is facing challenges with lightweight residential packages that do not sufficiently cover labor costs, prompting a strategic shift towards more profitable industrial and healthcare clients [4][5][8] Group 1: Gig Delivery Drivers - UPS has historically utilized gig drivers during busy holiday seasons and for last-mile deliveries in collaboration with the U.S. Postal Service [2] - The rise in eCommerce has led to more frequent surges in package volumes, necessitating the hiring of additional gig drivers to meet demand [3] Group 2: Strategic Realignment - UPS is undergoing a significant strategic shift aimed at reducing costs and enhancing profitability, which includes layoffs and buyouts of 34,000 drivers and warehouse workers, resulting in approximately $2.2 billion in cost reductions this year [4][6] - The company reported a 2.6% decline in domestic revenue for Q3, attributed to a planned decrease in volume, while international operations saw a 4.8% increase in average daily volume [7]

Core Insights - Newell Brands Inc. (NWL) is projected to experience a year-over-year revenue decline of 2.8%, with expected quarterly revenues of $1.89 billion for Q3 2025 [1][10] - The consensus estimate for earnings per share (EPS) is 18 cents, reflecting a growth of 12.5% compared to the previous year [2][10] Revenue and Earnings Expectations - The anticipated revenue decline is attributed to a challenging macroeconomic environment affecting consumer sentiment and discretionary spending [3] - The Outdoor & Recreation segment is expected to see a significant sales decrease of 9.9% in Q3 [4] Operational Factors - Management has forecasted a decline in net and core sales by 4-2%, with a normalized operating margin of 9.1-9.5% [4] - Cost-cutting measures and a streamlined organizational structure are expected to support profitability [5] Market Dynamics - Inflationary pressures, adverse currency fluctuations, and soft demand in the Outdoor & Recreation segment are ongoing challenges [3][10] - Newell Brands has reduced its reliance on Chinese imports, now sourcing only 15% of finished goods from China, down from 35% [7] Valuation and Stock Performance - Newell Brands is trading at a forward price-to-earnings ratio of 7.41X, which is below historical and industry averages, indicating an attractive investment opportunity [11] - The stock has declined 14.5% over the past three months, compared to a 5.1% decline in the industry [12]

Core Viewpoint - JPMorgan Chase & Co. is negotiating to lease an office project in Hong Kong's West Kowloon area, potentially marking the largest leasing deal in the city [1] Group 1: Company Moves - JPMorgan is planning to relocate from its current offices in the Central and Kwun Tong districts to occupy all three towers in the Artist Square Towers development, which spans 672,000 square feet [2] - If the move occurs, it would reflect a trend of financial institutions relocating from central business districts amid a prolonged market downturn, similar to UBS Group AG's recent office consolidation [3] Group 2: Market Context - The West Kowloon area is attracting international firms aiming to reduce costs and enhance access to Chinese clients via the high-speed train network, with existing financial firms like Morgan Stanley and Deutsche Bank already present [4] - Hong Kong's office market is experiencing significant pressure, with near record-high vacancies and declining rents; average office rents across business districts fell by approximately 0.8% in Q3, with forecasts predicting a further decrease of 4% to 6% for the year [5]

Core Viewpoint - Truist Securities has raised its price target on Deere & Company to $609.00 from $602.00 while maintaining a Buy rating, indicating a positive outlook despite muted investor sentiment ahead of earnings [1] Group 1: Market Sentiment and Expectations - Investor sentiment toward Deere remains muted ahead of earnings, creating a favorable setup for potential growth [1] - Analysts believe that market expectations for 2026 are overly bearish, particularly following a 20% decline in early orders for sprayers [1] Group 2: Segment Performance and Outlook - The outlook for large agricultural equipment in North America is uncertain due to trade-related risks, but a uniform 20% decline across all segments is not expected [2] - Early signs of improvement are noted in European and Brazilian agriculture, as well as in Deere's Construction and Forestry divisions [2] Group 3: Earnings Potential - Deere's earnings could benefit from a 10% underproduction in Small Ag, Turf, and Construction equipment, along with ongoing cost-cutting initiatives [3] - Despite headwinds in large agriculture, Deere is still positioned to grow earnings per share in 2026 [3] Group 4: Upcoming Catalysts - The pending decision on the U.S. Renewable Fuel Standard, expected by late October, is highlighted as a potential catalyst for U.S. farmers [4] - Deere's upcoming investor day on December 8 is anticipated to outline long-term strategic and financial goals [4]

Core Insights - BP is advancing with a $5 billion offshore drilling project in the Gulf of Mexico, expected to take five years to come online, with a production capacity of 80,000 barrels of oil per day by 2030 [1][2] - The project aims to enhance BP's US upstream output to over 1 million barrels of oil equivalent per day, contributing to a production target of 400,000 barrels of oil equivalent per day from the Gulf by 2030 [3] Company Strategy - The announcement reflects BP's commitment to rebuilding its oil and gas business in the US, following a strategic shift back to core competencies in oil and gas from renewables [2] - The Tiber and Guadalupe fields are estimated to hold recoverable resources of approximately 350 million barrels of oil equivalent [2] Competitive Positioning - BP aims to close the production gap with competitors Exxon Mobil and Shell, which have outperformed BP in shareholder returns in recent years [3] - The company is implementing cost-cutting measures, including a 5% workforce reduction, as part of a broader plan to achieve $500 million in cost savings by 2025 [4] Industry Context - The Gulf of Mexico's offshore oil production is projected to increase from 1.8 million barrels per day to 2.4 million barrels per day by 2027, driven by streamlined permitting processes and technological advancements [5] - Recent assessments indicate the Gulf holds 29.59 billion barrels of oil and 54.84 trillion cubic feet of gas in technically recoverable, undiscovered fields, with a 22.6% increase in estimated resources [6]

Economic Overview - A combination of economic challenges and geopolitical disputes is affecting global markets, with declining consumer confidence in the U.S. and significant corporate restructuring in Europe [2] - U.S. consumer sentiment has dropped to 55.1 in September, the seventh-lowest reading since 1952, driven by inflation fears and trade policy concerns [3][8] - Despite consumer pessimism, personal consumption expenditures increased by 0.6% in August, indicating some resilience in consumer spending [3] Legal and Regulatory Developments - Sixteen U.S. states and Washington, D.C., have filed a lawsuit against the Trump administration over threats to withhold federal sex education grants, potentially costing states over $35 million [4] - The Department of Justice is investigating George Soros's Open Society Foundations for alleged ties to terrorism, with accusations of over $80 million in funding to extremist groups [5] Corporate Adjustments - Volkswagen is implementing production cuts at several German plants due to weak demand for electric vehicles, with EVs only making up 16% of new car sales in Europe [8][10] - Deutsche Lufthansa plans to reduce its administrative workforce by 20%, resulting in approximately 3,000 job cuts, as part of a cost-cutting strategy following profit warnings [11] Currency and Economic Instability - The Turkish Lira has reached a new all-time low against the U.S. Dollar at 41.3580 TRY/USD, reflecting ongoing economic instability and high inflation [12] Technology Sector Updates - Microsoft is set to end support for Windows 10 on October 14, 2025, which may leave millions of PCs vulnerable unless users upgrade to Windows 11 or opt for paid Extended Security Updates [13] Defense Contracts - Lockheed Martin's Sikorsky subsidiary secured a $10.85 billion contract from the U.S. Navy for the construction of up to 99 CH-53K King Stallion helicopters, marking the largest order for this aircraft [9]

Core Insights - United Parcel Service (UPS) is experiencing revenue weakness primarily due to weak demand driven by tariff-related uncertainties, high inflation, and geopolitical issues, with a 2.7% year-over-year revenue decline in the June quarter [1][9] Revenue and Operating Performance - In Q2 2025, UPS reported a consolidated operating margin of 8.8%, down from 9.5% a year ago, with average daily volume declining by 7.3% year over year [2][9] - UPS has not provided revenue or operating profit guidance for 2025 due to ongoing uncertainties [2] - Adjusted operating expenses are expected to decline by 2.7% year over year in 2025, while revenues are projected to decrease by 4.7% [4] Customer Relationship Impact - UPS has decided to reduce its business with Amazon by over 50% by June 2026, as Amazon was not considered a profitable customer [3][9] Competitive Landscape - FedEx, a competitor of UPS, is also facing weak demand and is implementing cost-cutting measures, anticipating $1 billion in permanent cost reductions for fiscal 2026 [5] Stock Performance and Valuation - UPS shares have declined over 30% this year, underperforming its industry [6] - The company trades at a 12-month forward price-to-earnings ratio of 11.81X, slightly below industrial averages [7] Earnings Estimates - The Zacks Consensus Estimate for UPS' earnings for Q3, Q4, full-year 2025, and full-year 2026 has been revised downward over the past 60 days [11]

Core Insights - Peloton Interactive was a major beneficiary of the COVID-19 pandemic, with shares increasing by 550% from its public debut in September 2019 to a peak in January 2021 [1] - The company has faced significant challenges since then, with shares trading 95% below their record as of September 18 [2] Financial Performance - In fiscal year 2025, Peloton reported a net loss of $118.9 million, a significant improvement from a net loss of $551.9 million the previous year [3] - Q4 of fiscal 2025 saw a positive net income of $21.6 million, surprising the market which expected another loss [3] - The company has reduced expenses by at least $200 million in fiscal 2025 and aims to cut an additional $100 million in fiscal 2026 [4] Debt and Balance Sheet - Peloton's net debt has been nearly halved over the last 12 months, now standing at $459 million, marking a significant improvement from its previous financial troubles [5] Growth Challenges - Despite stopping losses, Peloton faces challenges in returning to growth, which is crucial for its long-term success [6] - As of June 30, Peloton had 2.8 million connected fitness subscribers, a decline from nearly 3 million two years ago [7] - Revenue has fallen by 6% year over year, with the company shifting its sales focus to subscriptions, which are high-margin and recurring [8] Future Outlook - Peloton's leadership plans to cut another $100 million in expenses this fiscal year, but the shrinking subscriber base continues to lead to declining revenue [9] - The stock trades at a low price-to-sales ratio of 1.2, but it is not considered a smart buying opportunity at this time [9]

Core Insights - Mark Cuban emphasizes practical financial advice for average Americans, advocating for smart investing over mere saving and cautioning against unnecessary expenses and debt [1][2]. Group 1: Investment Strategies - Saving without investing is ineffective; Cuban suggests that after establishing an emergency fund of three to six months of living expenses, individuals should invest in assets like index funds or real estate to outpace inflation [3]. - High-interest debt, particularly from credit cards, is detrimental; Cuban advises paying off such debts quickly to redirect income towards wealth-building strategies [4]. Group 2: Cost Management - Overpaying for everyday items is wasteful; Cuban recommends buying staples in bulk to save money and achieve better returns on regular purchases [5]. - Overspending on status symbols is discouraged; Cuban prefers casual attire over luxury items, advocating for investment in appreciating assets rather than expenditures that serve only to signal status [6]. Group 3: Education Financing - Excessive student debt is a concern; Cuban advises students to consider affordability when choosing educational institutions, highlighting his own choice of a cost-effective business school over more prestigious but expensive options [7].